Multi-Aero Inc. d/b/a Air Choice One

Transcription

1 Multi-Aero Inc. d/b/a Air Choice One Proposal to Provide Essential Air Service at Owensboro, Kentucky Docket DOT-OST Direct Inquiries Regarding this Proposal to: Shane Storz, CEO Air Choice One Airlines Old Tesson Road, Suite 200 F, Saint Louis, MO Phone: (866) Fax: (314)

2 Our Commitment Air Choice One is aware of the many challenges facing EAS communities. Our proposal will give the community of Owensboro, Kentucky the best access to the national transportation system at reasonable prices. We understand the efforts of a dedicated air carrier are critical to your continued success. Air Choice One is that air carrier and we believe the strategy outlined in our proposal will support and complement airport development efforts. We believe our analysis, planning, marketing strategy, and dedication to the community enable us to win the confidence of local travelers. Our outstanding customer service keeps them coming back. We have proven our strategy works with other EAS communities and we are committed to delivering the same results in yours. We are committed to reestablishing reliable air service and rebuilding customer loyalty. This proposal allocates substantial resources to support marketing efforts. Our achievements in our other EAS markets demonstrate that our marketing strategies are successful. Through on-site community outreach, community-specific advertising, consistent flight schedules, and outstanding customer service, we will build consumer recognition in the community and attract more passengers to your airport. We are committed to providing you with outstanding service and will continue working with you throughout our term to provide the next level of air service and, in turn, success for all.

3 Market Growth Strategy - Airport Partnerships Air Choice One will team with your local airport to raise awareness about your communities air service and increase enplanements. LOCAL AIRPORT INITIATIVES Provide Financial Support Through Discounted Fuel Costs, Landing Fees, and Rental Agreements Educate the Community about the EAS Program and Air Choice One s Service Draft and Distribute Press Releases Community Involvement Participate in TV and Radio Coverage Distribute Information Pertaining to Air Choice One at Local Business Events

4 Market Growth Strategy - Airport Partnerships Air Choice One will team with your chosen destination airport to promote tourism opportunities and encourage air travel to your community, again, increasing enplanements. LAMBERT ST. LOUIS INTERNATIONAL AIRPORT (STL) INITIATIVES Aggressively pursuing EAS Communities Through Partnership Programs Local Visits and Financial Support Annual EAS Summit Held at STL Airport STL Currently Supports Over 50 Daily Flights to Seven EAS Communities EAS Communities Partnering With STL Have Benefited From a Steady Increase in Ridership Provide Marketing Funds to Both Air Choice One and the Local Community Market Vacation Packages to STL and Beyond and to Local Communities From STL Expedited Security Passes Passengers With Connections Enter Security Through First/Business Class Line Discount Coupons for Airport Shopping and Concessions NASHVILLE INTERNATIONAL AIRPORT (BNA) INITIATIVES EAS Communities Receiving Reliable Service to Hub Airports Have Benefited From a Steady Increase in Ridership Market Vacation Packages to BNA and Beyond and to Local Communities From BNA Air Choice One Flights will be Serviced by American Airlines

5 Air Choice One is dedicated to working with your community to reinvigorate the service at your airport and sustain growth that will launch us into the future. Market Growth Strategy Partnering With the Community WE ARE YOUR NEIGHBORS Corporate Headquarters in Midwest Increase Local Career Opportunities WE ARE IN YOUR COMMUNITY Routine On-Site Sales Visits Chamber of Commerce Participation and Membership Airport Affiliate Participation STRONG PUBLIC RELATIONS AND MEDIA OUTREACH Business Incentive Programs Travel Agent Discounts Business to Business Communication Attendance at Public Events WE KEEP YOU INFORMED Monthly Airport Board Updates

6 Market Growth Strategy Marketing Investment Air Choice One reinvests in our served communities. TRADITIONAL MEDIA Radio-Talk Shows/Commercials TV Commercials and Event Coverage Print-Newspaper/Magazines Billboards Web Based E-Blasts- Constant Contact Monthly Promotions City Representation on Our Website SOCIAL MEDIA Twitter, Facebook, Linked In INTERACTIVE MEDIA Contests You Tube/Videos EVENTS AND SPONSORSHIPS Local Charitable Support-March of Dimes, Make-A-Wish Foundation, Red Cross, etc. Business/Community Support-Golf Tournaments, Business Luncheons, Air Shows, etc. COMMUNITY TICKET OFFICE

7 Completion % Market Growth Strategy Reliability & Growth Airline Completion Ratios Am. Eagle Gr. Lakes Sea Port Air Choice CONSISTENT SERVICE IS KEY Proven Success in Other EAS Markets Builds Passenger Confidence in Carrier Dedicated Aircraft for your Airport 102% Flight Completion Ratio as Reported by DOT YR 2010 Spare Aircraft Availability AIR CHOICE ONE S REVENUE INCREASED BY OVER 20% YE 2010 VS Works Cited: T-100 Segment Report DOT 2010 Calendar Year Airline

8 Market Growth Strategy Accessibility VISIBILITY Global Distribution Systems Apollo, Worldspan, Travelport, Amadeus, etc. Consumer Sites Expedia, Travelocity, Priceline, Orbitz, etc. Web based booking Call Center Open 7 Days a Week CONNECTIVITY United Airlines Agreement Additional Legacy Agreements Pending

9 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec # of Passengers Market Growth Strategy Pricing Air Choice One offers the right price for the right ticket at the right time. We take all things into consideration and enter the market with low fares. We work hard to establish a winning price point through targeted market analysis. We believe consistent pricing builds consumer confidence Air Choice One Ridership Growth EAS Markets * BUILDING & SUSTAINING RIDERSHIP THROUGH PRICE Introductory Fares Peak Interest and Drive Passengers to Air Choice One and Your Airport On-Going Affordable Fares = Full Planes! Full Planes Establish the Customer Base Needed to Reduce Future Subsidy Requirements Month of Service 2011 *Numbers Reflect O & D

10 Marketing Growth Strategy - New Hub, New Opportunities ST. LOUIS COMBO OF LOW FARE CARRIERS AND ENDLESS CONNECTIONS ARE THE KEY TO SELLING MORE TICKETS! Sample St. Louis Fares Air Choice One Operates from Gate E33, Terminal Daily Flights to 60 Domestic & International Markets as of August, More than 24,700 Daily Outbound Seats. Destinations (One Way) ACO Fare Southwest Fare* Total Fare LAS: Las Vegas, NV $49 $183 $232 LAX: Los Angeles, CA $49 $141 $190 LGA: New York, NY $49 $134 $183 FLL: Fort Lauderdale, FL $49 $154 $203 DAL: Dallas, TX $49 $88 $137 ORD: Chicago, IL $49 $0 $49 *Source : Southwest Airlines Website, September 2011, 14 Day Advance Purchase

11 Marketing Growth Strategy - New Hub, New Opportunities ST. LOUIS SHUTTLE SERVICE To enhance our hassle-free travel experience Air Choice One provides ramp side transfer service to and from all concourses for connecting flights at Lambert St. Louis International Airport. Ramp side service means Air Choice One passengers remain within the secure area of the airport and are not required to clear TSA a second time. 07/12/2011

12 Marketing Growth Strategy - New Hub, New Opportunities NASHVILLE S COMBO OF LOW FARE CARRIERS AND ENDLESS CONNECTIONS ARE THE KEY TO SELLING MORE TICKETS! Sample Nashville Fares Destinations (One Way) ACO Fare Southwest Fare* Total Fare Air Choice One will Operate from Gate C Daily Flights to 70 Markets as of June, 2011 Serving More than 10 Million Passengers Per Year LAS: Las Vegas, NV $39 $193 $232 LAX: Los Angeles, CA $39 $157 $196 LGA: New York, NY $39 $99 $138 FLL: Fort Lauderdale, FL $39 $113 $152 DAL: Dallas, TX $39 $128 $167 ORD: Chicago, IL $49 $0 $49 *Source : Southwest Airlines Website, September 2011, 14 Day Advance Purchase

13 Market Growth Strategy - BONUS Service to Chicago WE ARE OFFERING TWO HUBS & ADDITIONAL FLIGHTS TO BETTER SERVE THE NEEDS OF THE COMMUNITY We are aware of the advantages additional frequency and hub options offer your passengers. To provide an optimum level of service Air Choice One will also offer nonsubsidized air service to ORD and an additional non-subsidized flight to BNA. Air Choice One will work with the community to determine scheduling needs for these additional flights. We understand the importance of smooth and timely connectivity for local corporate and pleasure travelers. NON-SUBSIDIZED SERVICE TO CHICAGO & NASHVILLE Increased Passenger Options Will Grow Ridership Accommodate Local Corporate & Pleasure Travel Needs Increase Capacity Through Additional Flight Segments Dual Hubs Increase Connectivity

14 Options Index Owensboro, Kentucky Cessna Grand Caravan OPTION 1, 2 YEAR SERVICE STL SERVICE CESSNA GRAND CARAVAN Owensboro, Kentucky Lambert St. Louis International Airport 18 Round Trips Per Week Subsidized + 10 Round Trips Per Week Non-subsidized Cessna Grand Caravan OPTION 2, 2 YEAR SERVICE STL SERVICE CESSNA GRAND CARAVAN Owensboro, Kentucky Lambert St. Louis International Airport 21 Round Trips Per Week Subsidized + 10 Round Trips Per Week Non-subsidized OPTION 3, 2 YEAR SERVICE BNA SERVICE CESSNA GRAND CARAVAN Cessna Grand Caravan Owensboro, Kentucky Nashville International Airport 18 Round Trips Per Week Subsidized + 10 Round Trips Per Week Non-subsidized OPTION 4, 2 YEAR SERVICE STL SERVICE CESSNA GRAND CARAVAN Cessna Grand Caravan Owensboro, Kentucky Nashville International Airport 21 Round Trips Per Week Subsidized + 10 Round Trips Per Week Non-subsidized

15 Owensboro, Kentucky Cessna Grand Caravan Option 1: 2 Year Service 18 Total Round Trips Per Week Based on 98% Completion Rate Owensboro, Kentucky Lambert St. Louis International Airport Caravan Operation Revenues OWB-STL Revenues $ 369, Other Revenues 3, Total Operating Revenues $ 373, Direct Operating Expenses Flying Operations $ 194, Fuel and Oil 435, Maintenance 372, Aircraft Leases 375, Total Direct $1,377, Marketing 50, Indirect 361, Total Operating Expenses $1,789, Operating Loss $1,415, Profit Element (5% total Oper. Exp.) 89, Compensation Required $1,504, Compensation per PAX $ Compensation per Departure $ # Passengers: 7,550 Average Fare: $49.00 Departures: 1,840 Block Hours: 1,692 Revenue Passenger Miles: 1,411,850 Available Seat Miles: 3,087,564 Representative Schedule Schedule Items Shown in Green = Non-Subsidized Departure OWB 5:45 AM STL 7:15 AM OWB 8:30 AM ORD 11:00 AM OWB 1:30 PM STL 2:45 PM OWB 4:00 PM STL 5:15 PM OWB 6:30 PM STL 8:00 PM Arrival STL 6:45 AM OWB 8:15 AM ORD 10:15 AM OWB 12:45 PM STL 2:30 PM OWB 3:45 PM STL 5:00 PM OWB 6:15 PM STL 7:30 PM OWB 9:00 PM

16 Owensboro, Kentucky Cessna Grand Caravan Option 2: 2 Year Service 21 Total Round Trips Per Week Based on 98% Completion Rate Owensboro, Kentucky Lambert St. Louis International Airport Caravan Operation Revenues OWB-STL Revenues $ 387, Other Revenues 3, Total Operating Revenues $ 391, Direct Operating Expenses Flying Operations $ 205, Fuel and Oil 501, Maintenance 376, Aircraft Leases 325, Total Direct $1,408, Marketing 50, Indirect 418, Total Operating Expenses $1,877, Operating Loss $1,485, Profit Element (5% total Oper. Exp.) 93, Compensation Required $1,579, Compensation per PAX $ Compensation per Departure $ # Passengers: 7,912 Average Fare: $49.00 Departures: 2,146 Block Hours: 1,953 Revenue Passenger Miles: 1,479,544 Available Seat Miles: 3,602,159 Representative Schedule Schedule Items Shown in Green = Non-Subsidized Departure OWB 5:45 AM STL 7:15 AM OWB 8:30 AM ORD 11:00 AM OWB 1:30 PM STL 2:45 PM OWB 4:00 PM STL 5:15 PM OWB 6:30 PM STL 8:00 PM Arrival STL 6:45 AM OWB 8:15 AM ORD 10:15 AM OWB 12:45 PM STL 2:30 PM OWB 3:45 PM STL 5:00 PM OWB 6:15 PM STL 7:30 PM OWB 9:00 PM

17 Operation Revenues Owensboro, Kentucky Cessna Grand Caravan Option 3: 2 Year Service 18 Total Round Trips Per Week Based on 98% Completion Rate Owensboro, Kentucky Nashville International Airport Caravan OWB-BNA Revenues $ 284, Other Revenues 2, Total Operating Revenues $ 287, Direct Operating Expenses Flying Operations $ 225, Fuel and Oil 344, Maintenance 283, Aircraft Leases 375, Total Direct $1,228, Marketing 50, Indirect 353, Total Operating Expenses $1,632, Operating Loss $1,344, Profit Element (5% total Oper. Exp.) 81, Compensation Required $1,426, Compensation per PAX $ Compensation per Departure $ # Passengers: 7,300 Average Fare: $39.00 Departures: 1,840 Block Hours: 1,288 Revenue Passenger Miles: 839,500 Available Seat Miles: 1,898,770 Representative Schedule Schedule Items Shown in Green = Non-Subsidized Departure OWB 6:00 AM BNA 7:20 AM OWB 8:30 AM ORD 11:00 AM OWB 1:30 PM BNA 2:30 PM OWB 3:30 PM BNA 4:30 PM OWB 5:30 PM BNA 8:00 PM Arrival BNA 6:40 AM OWB 8:00 AM ORD 10:15 AM OWB 12:45 PM BNA 2:10 PM OWB 3:10 PM BNA 4:10 PM OWB 5:10 PM BNA 6:10 PM OWB 8:40 PM

18 Operation Revenues Owensboro, Kentucky Cessna Grand Caravan Option 4: 2 Year Service 21 Total Round Trips Per Week Based on 98% Completion Rate Owensboro, Kentucky Nashville International Airport Caravan OWB-BNA Revenues $ 306, Other Revenues 3, Total Operating Revenues $ 309, Direct Operating Expenses Flying Operations $ 225, Fuel and Oil 396, Maintenance 329, Aircraft Leases 375, Total Direct $1,325, Marketing 50, Indirect 410, Total Operating Expenses $1,786, Operating Loss $1,477, Profit Element (5% total Oper. Exp.) 89, Compensation Required $1,566, Compensation per PAX $ Compensation per Departure $ # Passengers: 7,850 Average Fare: $39.00 Departures: 2,146 Block Hours: 1,502 Revenue Passenger Miles: 902,750 Available Seat Miles: 2,215,231 Representative Schedule Schedule Items Shown in Green = Non-Subsidized Departure OWB 6:00 AM BNA 7:20 AM OWB 8:30 AM ORD 11:00 AM OWB 1:30 PM BNA 2:30 PM OWB 3:30 PM BNA 4:30 PM OWB 5:30 PM BNA 8:00 PM Arrival BNA 6:40 AM OWB 8:00 AM ORD 10:15 AM OWB 12:45 PM BNA 2:10 PM OWB 3:10 PM BNA 4:10 PM OWB 5:10 PM BNA 6:10 PM OWB 8:40 PM

19 The Best Choice to Succeed Proven Enplanement Increase in EAS Markets Successful Pricing Strategy Demonstrated Growth in Community Support Proven Reliability Outstanding Completion Ratio Great Hub Connectivity Successful Marketing and Public Relations Outreach Raise Awareness About Local Air Service We Cater to Community and Business Needs We Look Forward to Serving You!